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A Study On Compariion of Online With Offline Trading in Commodities
A Study On Compariion of Online With Offline Trading in Commodities
TRADING IN COMMODITIES
ABSTRACT
1
TABLE OF CONTENTS
Objectives 2
Industry Profile 3
Company Profile 6
Product Profile 16
Research Methodology 21
3. Findings 50
4. Suggestions 51
5. Conclusion 52
References 53
2
LIST OF TABLES
3
LIST OF CHARTS
4
1. INTRODUCTION
Angel Broking has once again been awarded the prestigious ‘Major
Volume Driver’ award for the second consecutive year of 2005-2006 by
The Bombay Stock Exchange. This coveted title was earlier conferred upon
Angel by the BSE for the year 2004-2005. About the Group.
The Angel Group has emerged as one of the top 5 retail stock broking
houses in India, having memberships on BSE, NSE and the two leading
commodity exchanges in the country i.e. NCDEX and MCX. Angel Broking
Ltd is also registered as a depository participant with CDSL. It is the only
100% retail stock broking house offering a gamut of retail centric services
like Research, Investment Advisory, and Wealth Management Services, E-
Broking & Commodities to individual investor.
5
NEED FOR THE STUDY
During my studies I knew something about the company, but now I
have specialized in a particular department for gaining industrial knowledge
about financial department for further continuation of my studies.
kind of management.
6
INDUSTRY PROFILE
The financial market in India is one of the oldest in the world and is
considered to be the fastest growing and best among all the markets of the
emerging economies. The history of Indian capital markets dates back 200
years toward the end of the 18th century when India was under the rule of
the East India Company. The development of the capital market in India
concentrated around Mumbai where no less than 200 to 250 securities
brokers were active during the second half of the 19th century.
7
witnessed a flurry of IPOs that were launched. This resulted in many new
companies across different industry segments to come up with newer
products and services.
The launch of the NSE (National Stock Exchange) and the OTCEI
(Over the Counter Exchange of India) during the mid 1990s by the
government of India was meant to usher in an easier and more transparent
form of trading in securities. The NSE was conceived as the market for
trading in the securities of companies from the large-scale sector and the
OTCEI for those from the small-scale sector. While the NSE has not just
done well to grow and evolve into the virtual ‘backbone’ of capital markets
in India the OTCEI struggled and is yet to show any sign of growth and
development. The integration of IT into the capital market infrastructure has
been particularly smooth in India due to the country’s world class IT
industry. This has pushed up the operational efficiency of the Indian stock
8
market to global standards and as a result the country has been able to
capitalize on its high growth and attract foreign capital like never before.
9
COMPANY PROFILE
Name of the company : Angel Broking
Alwarpet,
Chennai-600018
Website : www.angeltrade.com
10
The group is well supported by a professional and qualified research
team and efficient operations and back office team, which comprises of
highly dedicated and qualified individuals. Angel has an in-house, state of
art research department.
Our Vision
11
To Provide
To Investors Through
Innovative Products,
State-of-the-art Technology
12
Which exceed the expectations of our customers
On Our Premises
Opportunity to do so
13
Angel Securities Ltd. - Cash INB010994639, F&O INF010994639, UIN
100002956
E-BROKING
E-BROKING:
RESEARCH:
Daily services
14
Technical services
Fundamental services.
COMMODITIES:
DEMAT SERVICES:
15
Angel group is engaged in various activities such as trading / advisory
services in Indian capital markets viz., equity, futures and options etc. and
also in Indian commodities markets viz., commodities futures.
16
• Online application based trading software
• State-of-the-art technology
• Digital contract notes cum bill: View your accounts from any where,
any time
17
optimum margin level
• Off line services: You are free to make a telephone call to any of
our 71 well equipped branches across the country.
18
PRODUCT PROFILE
Commodity market
Commodities are more than what you think they are. Almost
everything you see around is made of what market considers commodity. A
commodity could be an article, a product or material that is bought and sold.
It could be any kind of movable property, except actionable claims, money
and securities. Commodity trade forms the backbone of world economy.
SEEDS
• Castor Seed
• Copra
• Cotton Seed
19
• Groundnut
• Linseed
• Rape/Mustard Seed
• Rape Seed-42
• Safflower
• Sesame Seed
• Soybean
• Sunflower seed
OILS
• Castor Oil
• Coconut Oil
• Groundnut Oil
• Linseed Oil
• Soybean Oil
20
• RBD Palmolein
• Vanaspati
OIL CAKES
• Castor Oilcake
• 7Coconut Oilcake
• Groundnut Oilcake
• Linseed Oilcake
• Sesame Oilcake
• Soybean Oilcake
21
METALS
• Aluminum
• Copper
• Kilo Gold
• Lead
• Nickel
• Silver
• Steel Flat
• Steel Long
• Tin
• Zinc
SPICES
• Pepper
• Cardamom
• Turmeric
• Red Chilli
PULSES
• Gram
• Tur/Arhar
• Urad
22
• Moong
• Masoor
• Yellow Peas
OTHERS
• Rubber
• Sacking
• Sugar
• Gur
• Guarseed
• Guarseed Bandani
• Wheat
• Rice
• Raw Jute
• Kapas
• Cashew Kernel
• Maize
23
RESEARCH METHODOLOGY
Research
Research methodology
Population
Sample size
From the portion of total population I have selected 100 respontent for
doing the research.
24
Collection of time
There are two processes in collecting data. They are primary and
secondary data, which I have used for collecting the data, is both primary
and secondary data.
Primary data
Secondary data
Data analysis
The collected data from the respondents was analyzed with the help of
simple percentage method.
What is commodity?
Commodity markets are those markets where raw or primary products are
exchanged. These raw commodities are traded on regulated commodities
exchanges in which they are bought and sold in standardized Contracts. This
is called commodity trading.
25
insurers, before a commodity market can begin trading.
MCX features amongst the world's top three bullion exchanges and
top four energy exchanges.
26
MCX INDIA
NCDEX INDIA
27
operations on December15, 2003.
28
to insure products purchased against price increases.
To explain this concept further, for instance, if a person desires to buy the
right to sell a given commodity for a certain price, the commodity options
market provides the opportunity. By paying the market-determined
premium, the person could then collect on the option if prices are below the
price at which the deal was finalized when the corn would actually be sold.
If prices are higher than the price at which the deal was finalized, the
commodity could be sold for the higher price and the cost of the premium is
absorbed.
On the other hand, the put option gives the holder the right, but not the
obligation, to sell the underlying commodity to the option writer at a
specified price on or before the option's expiration date. The call option and
the put option are two distinct contracts.
29
Commodity futures trading commission
30
Commodity Trading in futures/forward trade in India. Similar to the function
of the CFTC, The Forward Markets Commission is responsible for
regulating and promoting futures trade in commodities in India.
The FMC has its headquarters in Mumbai and the regional office is
located in Kolkata.
31
strategies. There are many issues related to Commodity Trading Advisors
investment, fees and regulations.
The Online commodity trading site usually lists a large number of unique
products covering a variety of commodities, structures, and settlement terms
ranging from Oil, Natural Gas, Electric Power, Precious Metals, Emissions
and Weather.
32
It provides for various media ranging from Physical Delivery and
Financial Cash Settlement. There are further derivative options available
ranging from Forwards, Swaps, Options, Spreads, Differentials, Complex
Derivatives.
All quotes posted by users on any online commodity trading systems are
live and firm. They can be acted on with full assurance of a completed
transaction. The greatest advantage of an online system for trading is that
just a click can be used to hit a bid or lift an offer.
33
OFFLINE COMMODITY
Commodities are more than what you think they are. Almost
everything you see around is made of what market considers commodity. A
commodity could be an article, a product or material that is bought and sold.
It could be any kind of movable property, except actionable claims, money
and securities. Commodity trade forms the backbone of world economy.
34
of entities associated with different value chains. It also reflects views and
expectations of a wider section of people who may be related to a particular
commodity.
The FMC has its headquarters in Mumbai and the regional office is
located in Kolkata.
35
The financial industry revolves around the Internet. Every thing is just
a few clicks away. This makes online trading most convenient. But there are
still investors who prefer the old fashion way of offline trading and they
mainly prefer offline trading for security reasons.
36
2. Instant online access
You can gain instant access to your account, the value of your portfolio
updates immediately before your eyes.
3. Enter online trades at anytime
You can enter online trades at anytime and from anywhere. This is
very convenient if you live in a different time zone than the country you are
trading in. Not to mention, it is especially fit for investors with busy
schedules.
4. With online trading you are in charge
Nevertheless, with all the convenience of online trading there are still
investors who prefer the old fashion way of offline trading.
3. Investors are not faced with the challenge of making these vital
investment decisions; especially, if they do not have the
experience necessary to make the appropriate
investments.
37
4. Also, there is someone there to answer any questions that may
cause concerns.
Not to mention, with offline trading mistakes are less likely to take
place. No one wants to throw their money away or stand by and watch
someone else throw their money away. It may be wise to hire a professional
to assist you in making the correct investment decisions if you feel you lack
the knowledge necessary.
38
2. DATA ANALYSIS AND INTERPRETATION
TABLE – 1
The above table shows that 6% of the respondents are below 20yerars.
34% of the respondents are between the age group of 21-30years. 22% of the
respondents are between the age group of 31-40years and 38% of the
respondents are above 40years.
Chart - 1
Classification of the Respondents based on Age
40 38
34
35
30
25 22
20
15
10 6
5
0
Below 20 21 - 30years 31 - 40years Above 40years
39Age
TABLE - 2
Male 89 89
Female 11 11
INFERENCE:
The above table shows that 89% of the respondents are males and
11% of the respondents are female.
CHART-2
90
80
70
60 No. Of Respondents
50
40 Percentage
30
20
10 No. Of
0 Respondents
Male Female
40
TABLE – 3
School level 56 56
ITI 20 20
Degree 24 24
Diploma 0 0
INFERENCE:
The above table shows that 56% of the respondents having school
level of education and 24% of the respondent finished their Degree courses.
CHART-3
School level
ITI
Degree
Diploma
41
TABLE – 4
Below 1year 42 42
1 - 5year 29 29
6 -10year 9 9
Above 10year 20 20
INFERENCE:
The above table shows that 42% of the respondents are having below
one-year experience. 29% of the respondents are having 1-5years of
experience. 9% of the respondents are having 6-10years experiences and
20%of the respondents having experience above 10years.
CHART-4
50
40
30
No. Of Respondents
20
Percentage
10
No. Of
0 Respondents
Below 1- 6- Above
1year 5year 10year 10year
42
TABLE – 5
Fully Satisfied 73 73
Satisfied 27 27
Not Satisfied 0 0
INFERENCE:
The above table shows that 73% of the respondents are fully satisfied
with the online trading provided by the organization and 27% of the
respondents are satisfied with the online trading provided by the
organization.
CHART-5
Percentage
Fully Satisfied
Satisfied
Not Satisfied
No. Of
Respondents
0 20 40 60 80 100
43
TABLE – 6
Fully Satisfied 34 34
Satisfied 66 66
Not Satisfied 0 0
INFERENCE:
The above table shows that 34% of the respondents are fully
satisfied with the ventilation facility provided by the organization and 66%
of the respondents are satisfied with the ventilation facility provided by the
organization.
CHART-6
Fully Satisfied
Satisfied
Not Satisfied
44
TABLE-7
Fully Satisfied 38 38
Satisfied 62 62
Not Satisfied 0 0
INFERENCE:
The above table shows that 38% of the respondents are fully satisfied
with the Commodity Trading and 62% of the respondents are satisfied with
the floor cleaning.
CHART-7
Not Satisfied
Fully
Satisfied
0 50 100 150
45
TABLE – 8
Fully Satisfied 81 81
Satisfied 19 19
Not Satisfied 0 0
INFERENCE:
The above table shows that 81% of the respondents are fully satisfied
with the Intra day commission charged by the organization and 19% of the
respondents are satisfied Intra day commission charged with the by the
organization.
CHART-8
100%
90%
80%
70%
60%
Percentage
50%
No. Of Respondents
40%
30%
20%
10%
0%
Fully Satisfied Satisfied Not Satisfied
46
TABLE – 9
Fully Satisfied 25 25
Satisfied 63 63
Not Satisfied 12 12
INFERENCE:
The above table shows that 25% of the respondents are fully satisfied
with the Delivery day commission. 63% of the respondents are satisfied with
the Delivery day commission and 12% of the respondents are not satisfied
with the Delivery day commission.
chart - 9
70 63
60
50
Percentage
40
30 25
20 12
10
0
Fully Satisfied Satisfied Not Satisfied
DELIVERY DAY COMMISSION
47
TABLE – 10
CLASSIFICATION OF THE RESPONDENTS BASED ON CREDIT
LIMIT PROVIDED BY THE COMPANY
Credit Limit No. Of Respondents Percentage
Fully Satisfied 73 73
Satisfied 27 27
Not Satisfied 0 0
Total 100 100
INFERENCE:
The above table shows that 73% of the respondents are fully satisfied
with the Services provided by the broking company and 27% of the
respondents are satisfied with the Services provided by the broking
company. CHART-10
Not Satisfied
No. Of Respondents
Satisfied
Percentage
Fully Satisfied
48
TABLE - 11
Online Trading 76 76
Offline Trading 24 24
Not Interested 0 0
INFERENCE:
The above table shows that 76% of the respondents are fully
interested to do the online trading. 24% of the respondents are interested in
offline trading.
CHART-11
online trading
No. Of Respondents
Percentage
49
TABLE - 12
Fully Satisfied 64 64
Satisfied 36 36
Not Satisfied 0 0
INFERENCE:
The above table shows that 64% of the respondents are fully satisfied
with the online commodity and 36% of the respondents are satisfied with the
online commodity.
CHART-12
100%
90%
80%
70%
60%
50% Percentage
40% No. Of Respondents
30%
20%
10%
0%
Fully Satisfied Not Satisfied
Satisfied
50
TABLE - 13
Fully Satisfied 24 24
Satisfied 76 76
Not Satisfied 0 0
INFERENCE:
The above table shows that 24% of the respondents are fully satisfied
with the offline commodity and 76% of the respondents are satisfied with
the offline commodity.
CHART-13
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Fully Satisfied Satisfied Not Satisfied
Percentage 24 76 0
No. Of Respondents 24 76 0
51
TABLE-14
Fully Satisfied 17 17
Satisfied 83 83
Not Satisfied 0 0
The above table shows that 17% of the respondents are expecting
some other facilities from management and 83%of the respondents are not
expecting any other facilities.
CHART 14
100
80
60
40
No. Of Respondents
20 Percentage
Percentage
0
No. Of Respondents
Fully
Satisfied
Satisfied Not
Satisfied
52
FINDINGS OF THE STUDY
27% of the respondents are highly satisfied with risk and return.
53
SUGGESTIONS
54
CONCLUSION
55
REFERENCE
www.commodity trading.com.
www.nseindia.comm.
www.money control.com.
56